Finisar, PetSmart: After-Hours Trading (Update 1)

Updated from 5:33 p.m. ET to include latest share prices and information on Sotheby's Holdings.

NEW YORK ( TheStreet) -- Shares of Finisar ( FNSR) fell in late trades after the optical networking company fell short on the top line in its latest quarter and gave a below-consensus outlook.

Sunnyvale, Calif.-based Finisar reported non-GAAP earnings of $21.9 million, or 23 cents a share, in the three months ended Jan. 29, up slightly from an equivalent profit of $21.5 million, or 23 cents a share, in the second quarter ended in October. Revenue totaled $243 million in the latest quarter, up 0.6% from $241.5 million in the second quarter.

The average estimate of analysts polled by Thomson Reuters was for earnings of 22 cents a share in the third quarter on revenue of $245 million.

The stock was last quoted at $18.10, down 10.8%, on volume of nearly 730,000. Based on Wednesday's regular-session close at $20.29, the shares are down more than 40% in the past year.

Finisar also forecast non-GAAP earnings of 18 to 22 cents a share on revenue ranging from $235 million to $250 million for its fiscal fourth quarter ending in April. That view is below the current consensus estimate for a profit of 25 cents a share in the quarter on revenue of $253.5 million.

"Sales of datacom products were strong," said Jerry Rawls, the company's executive chairman, in a statement. "Gross margin was relatively unchanged from the preceding quarter, despite the impact of one month of the annual price reduction for telecom products. We held operating expenses below plan, so that operating income and operating margin increased relative to the preceding quarter."

The news was impacting shares of the other main optical networkers in the extended session with Ciena ( CIEN), down 2% to $14.60 on volume of more than 90,000; and JDS Uniphase ( JDSU), losing 2.5% to $12.70 on volume of nearly 100,000.

Petsmart

Shares of PetSmart ( PETM) were weak after the bell as well despite a penny beat by the Phoenix-based pet products retailer in its latest quarter.

Amid a 5.5% increase in same-store sales, PetSmart reported fiscal fourth-quarter earnings of $102 million, or 91 cents a share, on sales of $1.64 billion, besting Wall Street's consensus view for a profit of 90 cents a share in the January-ended period on sales of $1.62 billion.

The stock was last quoted at $54.45, down 2.3%, on volume of more than 350,000, according to Nasdaq.com. The shares have ranged from a high of $57.50 to a low of $53.65 in the extended session.

PetSmart also said it expects earnings of 70 to 74 cents a share in its fiscal first quarter ending in April with same-store sales seen rising in the low-to-mid single digits. For the full fiscal year ending next January, the company sees a profit of $3.02 to $3.16 a share.

The current average analysts' estimates are for earnings of 70 cents a share in the first quarter and $3.01 a share for the year. PetSmart shares are up nearly 35% in the past year, hitting a 52-week high of $56.39 on Tuesday ahead of the report.

At these levels, the valuation may be a bit rich as the forward price-to-earnings multiple sitting at 18.5X vs. 13X for the S&P 500, and 11.2X for Wal-Mart ( WMT).

Also active in late trades was Sotheby's Holdings ( BID). The New York-based auction house reported a fourth-quarter profit of $71.5 million, or $1.04 a share, on revenue of $284.3 million, below the average estimate of analysts polled by Thomson Reuters for earnings of $1.25 a share on revenue of $298.4 million.

The company attributed a year-over-year decline of 11% in auction and related revenue to $274.9 in the latest quarter from $310.5 million last year to " a decrease in single-owner sales during the quarter, as well as a significant decrease in auction commission margin."

The stock was last quoted at $36.03, down 8.4%, on volume of more than 60,000, according to Nasdaq.com. Based on Wednesday's regular-session close at $39.34, the shares were down more than 20% in the past year, but Wall Street was bullish ahead of the report with 5 of the 6 analysts covering the stock at strong buy (4) or buy (1), and the 12-month price target at $45.

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